Investors in cash trouble should check out Mastercard Incorporated (MA)

Mastercard Incorporated (NYSE: MA) stock jumped 0.55% on Friday to $356.07 against a previous-day closing price of $354.13. With 2.34 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.07 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $358.61 whereas the lowest price it dropped to was $349.65. The 52-week range on MA shows that it touched its highest point at $399.92 and its lowest point at $303.65 during that stretch. It currently has a 1-year price target of $419.46. With its current market cap of 336.03 billion, MA has annualized dividend of $1.96 while the current yield stands at 0.55%. Beta for the stock currently stands at 1.04.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MA was up-trending over the past week, with a rise of 1.03%, but this was up by 11.21% over a month. Three-month performance dropped to -3.38% while six-month performance fell -10.25%. The stock lost -3.24% in the past year, while it has lost -0.90% so far this year. A look at the trailing 12-month EPS for MA yields 9.87 with Next year EPS estimates of 12.64. For the next quarter, that number is 2.59. This implies an EPS growth rate of 37.40% for this year and 19.44% for next year. EPS is expected to grow by 22.84% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 18.90%.

Float and Shares Shorts:

At present, 971.00 million MA shares are outstanding with a float of 863.98 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.37 million, which was 0.55% higher than short shares on Jun 14, 2022. In addition to Mr. Michael Miebach as the firm’s CEO, Pres & Director, Mr. Sachin Mehra serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 78.53% of MA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.13% of MA, in contrast to 34.96% held by mutual funds. Shares owned by individuals account for 11.15%. As the largest shareholder in MA with 7.52% of the stake, The Vanguard Group, Inc. holds 72,520,179 shares worth 72,520,179. A second-largest stockholder of MA, BlackRock Fund Advisors, holds 40,462,209 shares, controlling over 4.19% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in MA, holding 34,884,841 shares or 3.62% stake. With a 2.65% stake in MA, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 25,605,480 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 1.97% of MA stock, is the second-largest Mutual Fund holder. It holds 19,008,190 shares valued at 6.0 billion. SPDR S&P 500 ETF Trust holds 0.96% of the stake in MA, owning 9,290,348 shares worth 2.93 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MA since 37 analysts follow the stock currently. There are 26 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 8 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MA analysts setting a high price target of $472.00 and a low target of $303.00, the average target price over the next 12 months is $419.00. Based on these targets, MA could surge 32.56% to reach the target high and fall by -14.9% to reach the target low. Reaching the average price target will result in a growth of 17.67% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MA will report FY 2022 earnings on 02/02/2023. Analysts have provided yearly estimates in a range of $10.89 being high and $10.27 being low. For MA, this leads to a yearly average estimate of $10.58. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Mastercard Incorporated surprised analysts by $0.20 when it reported $2.56 EPS against a consensus estimate of $2.36. The surprise factor in the prior quarter was $0.58. Based on analyst estimates, the high estimate for the next quarter is $2.80 and the low estimate is $2.37. The average estimate for the next quarter is thus $2.59.

Summary of Insider Activity:

Insiders traded MA stock several times over the past three months with 13 Buys and 9 Sells. In these transactions, 11,637 shares were bought while 536,043 shares were sold. The number of buy transactions has increased to 38 while that of sell transactions has risen to 82 over the past year. The total number of shares bought during that period was 264,079 while 3,055,325 shares were sold.

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